Mineral and Petroleum Resources Minister Gwede Mantashe has cautioned African countries against engaging in a “race to the bottom” as global demand for critical minerals continues to rise, warning that the continent risks being short-changed despite its vast natural wealth.
Mantashe was speaking on Monday at the Mining Indaba in Cape Town, an annual four-day gathering of mining companies, government leaders, and financiers focused on the state of the mining sector, its challenges, and investment opportunities.
According to the Africa Finance Corporation, Africa is home to an estimated $39 trillion in on-site mineral value, accounting for more than 20% of the world’s mineral wealth. However, the continent captures only a small portion of the economic value generated from these resources.
Mantashe said the failure to beneficiate minerals locally — turning raw materials into products such as steel, aluminium, and batteries — continues to deprive African economies of significant growth opportunities.
To reverse this trend, he urged African leaders to adopt a unified approach when engaging with global investors and developed economies.
“This continent owes it to itself to unite, work together, and talk to the outside world as one. It’s a long way to go, but let’s give it a try, let’s give it a go,” Mantashe said.
This year’s Mining Indaba takes place against the backdrop of rising geopolitical tensions, driven largely by increased competition among developed economies seeking greater control over the natural resources of developing nations.
Mantashe said stronger collaboration between African countries would help the continent avoid destructive competition, strengthen its bargaining power, and ensure that its mineral wealth delivers greater value for its people.